New York authorities are suing Valve over Steam loot boxes

The legal action was spearheaded by New York Attorney General Letitia James.

New York State authorities have filed a lawsuit against Valve Corporation, accusing the tech giant of facilitating unlicensed gambling through the loot box mechanics found on its Steam platform.

The complaint alleges that the monetization strategies in flagship titles such as Counter-Strike 2 and Dota 2 effectively promote gambling behaviors. Prosecutors argue that because users pay for a randomized chance to obtain rare virtual items, the system is functionally identical to a slot machine. This stands in direct violation of New York law, which strictly prohibits gambling activities outside of specifically regulated exceptions.

The filing further characterizes loot boxes as a “slippery slope” that can lead to the development of gambling addictions among minors. It highlights disturbing reports of children, some as young as 11, using parental credit cards to fund microtransactions and participate in these randomized reward schemes.

Source: iXBT.games